The Construction Lien Act is Not for You!

Avoid it at all costs!

It often is ineffective for small matters.

On mid-level claims, unless there is a quick resolution, the costs will outweigh the likely benefits.

Oh sure, you will read articles from other lawyers droning on and on about the 45 day lien period, the concept of preservation versus perfection and general liens.

So when does it work?  Or at least is of some use?

Firstly, if the amount of money involved is within the Small Claims Court jurisdiction (no more than $25,000.00) do not use it, unless one is convinced there is a pending sale, or the owner is building using lender financing.  A lien will put a wrench into either, and often bring people to the table.

Secondly, if you are relatively sure that the other side does not have a valid “counter claim”, then the lien will at least provide some potential security.

It is that notion of “potential security” that is key.

You see, the real problem of the Act is the perception that it is going to be quick and expeditious.  On that basis, it usually fails.

But so too does the usual litigation process.  What the Construction Lien Act does do is should litigation be necessary, the potential amount owing as found by a judgment, may actually be available to be collected.

That is one thing the usual litigation process cannot ever provide.

Consider yourself warned……

John Barzo

John Barzo
205-60 Collier Street,
Barrie, Ontario, Canada
L4M 1G8

#: 705-733-6245
jbarzo@barzolaw.com

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